[International Factor Movement and the National Advantage]

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Datos Bibliográficos

ID9727416
AutoresV K Ramaswami (autor de correspondencia)
Año1970
Volumen37
Número145
Páginas85
Fecha de publicación1970-02-01
Peer ReviewedSí
Open AccessNo
TipoARTICLE
RevistaEconomica (JOURNAL)
Identificadores de la revistaISSN: 0013-0427 • E-ISSN: 1468-0335
EditorialJSTOR (PUBLISHER)
DOI10.2307/2552005
OpenAlexW2021306528
IdiomaEN
Citas recibidas9

Suppose that a capital-rich country, Mancunia, and a capital-poor country, Agraria, each use capital (K) and labour (L) to make the same good, the common production function / = F (K, L) exhibiting constant returns to scale and diminishing returns to varying factor proportions. Initially there is no factor movement because of Mancunian prohibitions. Mancunia now wishes to secure the factor movement which maximizes its per capita income, and is sure that Agraria will not retaliate. The policy measure considered in the literature2 is the optimal restriction of investment in Agraria, the implicit assumption being made that labour is immobile. Using subscripts m and a to denote countries, foreign investment I is optimal when

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